2023 Expectations | 10 Mortgage Tips | Thank You
The 2022 finish line is approaching, and we’d like to leave you with a snack-sized snapshot of what’s to be expected in 2023, along with our top 10 mortgage tips. We thank you your support this year and hope you get a chance to unwind over the break. See you in 2023!
What’s to be expected in 2023
Even though the cost of living is so high, in comparison to other economies abroad, Australia's economy can be considered strong, and in a relatively healthy economic state. Rising interest rates, higher inflation and unemployment, and softening consumer sentiment, especially in the property market, will challenge this underlying strength in 2023.
How many more rate rises do we have to go here? Economists from our major banks believe there’s at least 1 or 2 rate rises to go, with NAB’s Group Chief Economist Alan Oster suggesting we will have back-to-back rises of .25 per cent in February and March 2023, before a long pause in Australia.
It’s not going to be long though until the full effects of these interest rate rises are felt. Especially when more borrowers switch in 2023 from fixed-rate home loans set in 2020 and 2021 at rates of only 1.8-2.4 per cent, to a much higher variable rate of 4.75-5.25 per cent - triggering much higher repayments.
The general consensus amongst most economists is that rates will rise a little more, most agreeing with Alan Oster's comments above, and property prices are likely to decline a little further in 2023, with the unemployment rate worsening a little.
After the next two rate rises, we at Black & White Finance believe or we hope, there will be no further rate hikes and the next RBA rate change, is for rates to be reduced. We see this happening at the end of 2023 or early 2024 and roughly around this period do we see property prices increasing again. It will be an interesting year in 2023 but one thing is for sure, from an economic perspective, you’d rather be here in Australia versus living somewhere else, like the UK, or in the US. Both these countries recently had another .5 per cent increase in their interest rates with more of these radical rises still to come.
It's going to stay tough for a little while, so it's important to ensure your lending solution is in your best interests and is meeting your specific requirements. Here's our top tips to keep you on top of your mortgage matters in 2023.
Thank you for your support this year
All of us here at Black & White Finance thank you for your support in 2023. Thank you for choosing Black & White Finance and for recommending us to your friends and family.
We wish you and your loved one’s all the very best for this festive season.
We will be taking some time off and the office will be closed from Thursday the 22nd of December, back to work on Tuesday the 10th of January, 2023. See you next year!
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